EURUSD resumed the ascent after a short-term pullback witnessed yesterday. The pair bounced from the 1.1370 area and regained the 1.14 handle. At the same time, the common currency struggles to extend gains above the 1.1430 intermediate resistance, refraining from challenging recent highs around 1.1450. A break above this barrier will open the way to 1.15. However, as the euro’s upside impetus looks unsustainable, the 1.14 figure may turn into resistance again if the current ascent stays muted. In this scenario, the pair could retreat to the mentioned local lows around 1.1370, or slip to even lower levels.
GBPUSD extends its retreat from local highs around 1.2650 registered earlier this week. In recent trading, the pair derived support marginally above 1.25 and trimmed intraday losses. As long as this level continues to act as support, there is quite a good chance of another bullish attempt. A decisive come back above the 1.26 barrier is necessary for more sustainable gains during the upcoming week. The daily RSI is pointing lower but the bias is too modest to bet on further losses in the immediate term. The pair will likely bounce from the mentioned lows and retarget the initial bullish goal around 1.2570.
USDJPY is nearly unchanged on Friday, continuing to oscillate around the 20-DMA that remains in market focus these days. Yesterday, the greenback climbed to 106.80 but failed to see a sustainable rally and retreated again. The fact that the pair struggles to regain a decisive upside momentum is pointing to the lingering bearish risks that could send the prices back below the 107.00 handle that is acting as local support today. In a wider picture, the dollar continues to follow the descending 20-weekly moving average that further caps bullish attempts in the pair. The RSI on the weekly timeframes looks neutral and unbiased, suggesting volatility will remain muted in the days to come.
The cross remains on the offensive but still struggles to overcome the 122.50 resistance that has been capping the euro bulls this week. The daily RSI continues to point north and remains in the neutral territory, suggesting further gains could be ahead in the short term. On the other hand, the longer the common currency remains below the 122.50 area, the higher is the risk of a downside correction amid profit-taking. On the four-hour timeframes, the technical picture looks bullish, with prices staying far above the key moving averages.
USDCHF plunged aggressively on Friday following yesterday’s rejection from two-week highs around 0.9470. As a result, the pair retreated to the 0.94 support area that could cap further selling pressure in the short term. After the recent sell-off, the daily RSI reversed south in the neutral territory, suggesting further losses could be ahead. A break below the mentioned psychological support could bring an even more intense bearish pressure. In this scenario, the dollar will likely extend losses to critical lows around 0.9360 last seen one week ago. On the upside, the 0.9470 remains the key local target for bulls.